How Does Google Dropping YouTube App Affect The App Space?

the Apple YouTube app doesn’t allow ads to be runagainst all those
billions of videos views a month that YouTube draws on mobile devices.

Because ads aren't run on the iPhone YouTube app, and no ads means no
money generated. Multiply that by thousands of artists, movies, and all
kinds of content that advertisers want to run ads against–ads that will
bring in up to $3.6 billion in revenues this year,
As the online world shifts from websites to apps, how does this impact online advertising?